Wednesday, October 5, 2022
HomeTechnologyTwitter Shareholders Approved Elon Musk's $44B Bid, Despite Lawsuit

Twitter Shareholders Approved Elon Musk’s $44B Bid, Despite Lawsuit

Although Elon Musk seeks to scrap the deal to purchase Twitter and make it a private company, the social media giant’s shareholders voted to approve the buyout offer for $44 billion.

The two sides are set to meet in a Delaware court next month to determine the firm’s faith.

  • Citing a brief conference call among Twitter’s shareholders, Bloomberg reported that they have voted in favor of accepting Elon Musk’s buyout offer worth $44 billion.
  • Since the billionaire wants to back out of the deal, Twitter will now try to force him into acquiring the company in court.
  • Musk outlined plans to purchase the social media platform earlier this year and made an offer for $44 billion. However, he changed his mind a few months later, claiming that the company failed to provide him with accurate data about the number of fake accounts on the platform.
  • Twitter officials refuted his claims, asserting that the percentage of monetizable daily active users (those able to look at ads) is less than 5%. As such, the company decided to sue Musk for backing out of the deal and even blamed him for the poor Q2 results.
  • Interestingly, Twitter’s net worth is around $32 billion, according to some estimations, a significantly lower number than Musk’s offer.
  • The approval from Twitter’s shareholders comes just a day after the company’s former head of security – Peiter Zatko – testified before US Senate, alleging that the social media giant is “a decade behind” certain security standards.
  • He has also previously supported Musk’s claims that the number of fake profiles is much higher than what Twitter claims. A US judge said Musk’s lawyers will be able to use the whistleblower’s testimony in court.

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